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Life Insurance For Disabled People

Updated On Sep 28, 2021

People with disabilities may find it difficult to obtain life insurance. A person with a life-threatening impairment may be charged a substantially higher premium in specific instances. However, there are a number of companies that specialise in providing life insurance to people with disabilities. Disabled people now have more options than ever to select a life insurance coverage that will work for them. Term insurance for disabled people can help handicapped and differently-abled individuals protect their family's future.

Factors to Consider While Purchasing a Term Insurance Plan For a Disabled Person

When purchasing a term plan for a disabled applicant, there are a few things to remember.

1. Coverage - You must verify that the term insurance plan's coverage is sufficient to assist your beneficiaries through any financial difficulties that may arise as a result of your death. You can look up the sum assured and see if it's adequate to pay your dependents' annual expenses.
2. Premium - The cost of purchasing term insurance for disabled people is typically higher than the cost of conventional insurance. Nonetheless, be sure the premium you'll have to pay fits into your budget, so you don't have to worry about missing a payment.
3. Riders - Additional riders, such as accidental death benefit coverage, premium waiver riders, or long-term care riders, are frequently included with term insurance. Investing in riders can be especially beneficial for those with disabilities. As a result, be sure that the right rider is added to your term plan.

Must Read: What Advantages Does Your Term Insurance Plan have Over Other Types of Insurance?

How Does a Disabled Person Benefit from a Term Insurance Plan?

Disabled people and their families can benefit from term insurance for disabled people in a variety of ways. The following are some of the advantages of term insurance.

1. Financial Aid To The Beneficiaries Of The Policyholder - Term insurance for disabled people pays death payments to the policyholder's nominees if the policyholder dies during the policy's term. If the insured was the family's sole or principal breadwinner, the surviving beneficiaries might face a financial loss. The death benefits can assist the family in getting through these difficult times by providing a financial safety net on which they can rely. It can be used to pay off debts left behind by the deceased or to cover major expenses such as tuition.
2. Financial Assistance To Cover Medical Costs - Taking care of a disabled person can be costly. It frequently necessitates multiple visits to the doctor to assess and manage the issue. Disabled people may also require treatment to deal with any difficulties resulting from their handicap. These issues frequently result in rising medical costs that are difficult to bear. If the base plan is supplemented by supplementary riders, which most insurance companies offer, term insurance for disabled people can assist the insured to cover these expenditures.
3. Tax Benefits - Term insurance can also help disabled people save money on taxes. The premium paid by the investor can be deducted from their total income under Section 80C of the Income Tax Act, lowering their tax burden. Up to Rs. 1.5 Lakhs of the premium is tax-deductible. Furthermore, due to the rules of section 10 (10D) of the Income Tax Act, the death benefits received by the disabled person's nominee or beneficiary are not taxable. Disabled people might benefit from a protective cover as well as tax advantages by investing in term insurance.

Take Away

Disabled people can acquire term insurance without difficulty. All you have to do is make sure the insurer's coverage is sufficient to meet both your medical needs in the event of an emergency and your nominee's financial obligations in the event of your death.

Also Read: How To Get Loan Against A Life Insurance Policy?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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